Is it just me, or has anyone else noticed SI very slow today? From USA Gold Site...............
MARKET UPDATE (12/17/97) AM-----What do the Japanese have against December? In what could go down as a surprise attack the equivalent of a financial Pearl Harbor, Japan opened a two pronged attack on the dollar while America slept. On one flank, the Japanese government announced a 5 trillion yen stimulus package including a tax cut to bolster its ailing economy and banking sector. In a another thrust, the Bank of Japan declared war on the dollar selling aggressively whenever the greenback stuck its head out of the water. Anyone who reads this report knows that we have long predicted these events. The Japanese surprise is probably the result of another round of currency devaluations and stock market declines which recently began in Thailand and the Philippines where the Asian currency crisis had its humble beginnings early this year. The possiblitly of Round Two, it appears, forced Japan's hand. The strong dollar, some analysts including this one believe, has been at the root of the spreading currency and equities' breakdown. "The Dollar Must Come Down". The bond market is in full retreat this morning and the dollar is dropping rapidly. Gold buying has become aggressive in a move which started in Hong Kong overnight. Strong Asian physical buying that started last week gathered pace. Although there are no reports of short covering thus far this morning, we wouldn't be surprised to see it begin in earnest as soon as the big players determine whether or not this move is for real. If short covering begins, it could have a trampoline effect on the price. The very large short position will have to be covered and if the price gets out of control the shorts could be routed. We will watch closely to see what develops. COMEX gold stocks were down a whopping 36,856 ounces overnight indicating once more that somebody's buying gold out there -- and large amounts of it. That's it for this morning. We will report again if we have anything to add. |
